Nicosia, Cyprus. Negotiations between Cyprus and Israel over rights to natural gas under the eastern Mediterranean seabed have reached a “very advanced stage”, Energy Minister Michael Damianos said on Tuesday. He said important commercial terms were agreed at a meeting on Monday, while some legal matters remain unresolved.
Progress in negotiations
Damianos said a “very good meeting” was held on Monday and that “important commercial terms were agreed upon”. He added that “some legal matters remain” and that efforts are continuing to close several pending issues in the next period of time.
Aphrodite field dispute
The disagreement concerns the Aphrodite gas field in Block 12 of Cyprus’ exclusive economic zone. Block 12 is located at the southernmost tip of Cyprus’ EEZ and borders Israel’s EEZ to the southeast, with the Aphrodite field situated in the eastern part of the block.
For years, Israel has argued that part of the gas in Aphrodite comes from the neighbouring Yishai field in Israel’s EEZ. Some estimates have said that up to 10 per cent of the field could be Israeli, putting more than €1 billion at stake.
Previous expectations
Damianos’ predecessor, George Papanastasiou, said in January last year that negotiations had entered their final stage and that he expected an agreement by the end of April that year. At the time, he said, “Our aim is to visit the neighbouring country to reach a conclusion and sign it.”
Regional developments
Various geopolitical developments in the region diverted attention away from the dispute, including last summer’s 12-day conflict between Israel and Iran and this spring’s war involving Israel, Iran and the United States.
Expected investment decision
Damianos said that following an agreement with Israel, the government expects the consortium of Chevron, NewMed Energy, and BG Group, owned by Royal Dutch Shell, to sign a final investment decision regarding Block 12 next year.